Gellman Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): Common stock..................................

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Gellman Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions):
Common stock.................................. $ 256
Additional paid-in capital.................. 286
Retained earnings.............................. 2,190
Treasury stock................................... (690)
Total stockholders’ equity ............... $2,042

During the next year, Gellman Marketing purchased treasury stock at a cost of $22 million and resold treasury stock for $15 million (this treasury stock had cost Gellman Marketing $4 million).
Record the purchase and resale of Gellman Marketing’s treasury stock. Overall, how much did stockholders’ equity increase or decrease as a result of the two treasury stock transactions?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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